Recommended by Luke Stewart, Galliard Group Business Development
At Galliard Group, we often get asked about simple financial tools and information to help our smaller clients to manage and understand their business finances better. There is a range of useful books available and many of them cover the key points that any business owner should be familiar with to effectively run their business. One resource, The Definative Guide to Managing the Numbers by Richard Stutely, is an older book, but very useful – providing clear explanations, examples and no-nonsense advice for the non-financially-minded business owner.
The opening chapters explain the very basics of financial management – such as the difference between a bookkeeper, an accountant, Head of Finance, Controllers and CFOs. And, if you ever wondered if you should be working with a financial accountant, a cost accountant or a management accountant, you’ll find the answer here. (Hint, one provides information on financial reporting, one on the cost of goods produced or sold and the other provides advice to help you make sound financial decisions for your business).
Each chapter outlines not only what you will learn, but also what kinds of questions you should be asking and where to find the answers.
The author covers key financial management such as the importance of understanding cash flow as opposed to simply managing using a budget; how to read a financial report, balance sheets and income statements; how to conduct a bank reconciliation, manage expense claims and understand the difference and advantages of cost versus accrual accounting.
One of the best features of the book is the simple tools/graphs and explanations. Anyone, regardless of their experience and background with financial information can use and understand these tools. He includes examples and instructions for using spreadsheets, basic bookkeeping software, and developing graphs that will illustrate the point that you want to emphasize. In addition, the book gives very practical advice for working with your financial advisor, what questions to ask, where to get more information and how to spot an accounting red flag.
I would recommend The Definitive Guide to Managing the Numbers book for any business owner who wanted to become more familiar with their financial situation, and more comfortable with using their financial information to make sound business decisions.
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